NEW INDIA ASSURANCE CO. LTD Vs. RAJAN

JUDGEMENT

(1.) M. F. A. 267 of 1987 arises from the award in O. P. (M. V) 425 of 1985 of the Motor Accidents Claims Tribunal, Quilon and M. F. A. 33 of 1987 arises from the award of the same Tribunal in O. P. (M. V.) 241 of 1985. In O. P. (M. V.) 425 of 1985 Rs. 1,65,000/- was awarded. In O. P. (M. V.) 241 of 1985 Rs. 78,500/- was awarded. Insurance Company is the appellant in both the appeals.

(2.) Insurance Company can challenge the quantum of award only when the insurance policy reserves a right to defend the action in the name of the assured. When there is such a reservation, all defences open to the assured can be urged. In New India Assurance Co. Ltd. v. Celine [ 1993 (1) KLT 159 (FB)] the position is made clear. The decision states :

(3.) Admittedly the insurance policies of the vehicles were not produced before the Tribunal. In M. F. A. 267 of 1987 the policy was produced along with the appeal. Whether that would be sufficient is the moot point to be considered.